On the one hand, Shenlong is working very hard to overcome the problems of the Chinese market. On the other hand, Stellantis Group CEO Tang Weishi said at the Paris Motor Show that Jeep's light asset model seems to be applicable to Peugeot Citroen.

On the one hand, Shenlong is working very hard to overcome the problems of the Chinese market. On the other hand, at the Paris Motor Show Stellantis Group CEO O Tang Weishi said that the light asset model of Jeep seems to be applicable to Peugeot Citroen.

Tang Weishi's remarks do represent the Stellantis Group's ideas in a sense, but they may not determine the fate of Shenlong in the Chinese market.

The main reason is that Stellantis Group, as a brand new large automobile group, was merged by PSA and FCA in 2021. This is not a long-standing enterprise. There must be a stalemate between multiple forces in strategic operations. At the same time, the brand new Stellantis Group has 15 automobile brands, and it is necessary to remove non-performing assets. Although

is the CEO, it does not mean that the development of the Stellantis Group is determined by Tang Weishi alone. The game between the power of the senior management and the forces behind it is the key. At the same time, Shenlong may not be the case in defining non-performing assets.

light asset operation is a strategy proposed by Tang Weishi. Shortly after this strategy was proposed, Guangfike was disbanded on the spot, and Jeep's domestic models were no longer produced. After releasing the pressure on non-performing assets, Jeep and Alfa Romeo brand models were imported to China through demand.

Tang Weishi said that this model has achieved results on Jeep, reducing the company's investment with less effort, but it has received more returns.

The brand new Stellantis Group is eager to clear its non-performing assets.

financial report shows that Stellantis Group's revenue in the first half of the year was 88 billion euros, an increase of 17%, and its operating profit reached 12.4 billion euros, an increase of 44%. Among the 3.02 million new cars sold in the first half of the year, sales in the European and American markets accounted for more than 70%. Stellantis Group's share in the Chinese market is not large.

From Tang Weishi's perspective, his current position can reverse the previous unfavorable modes of PSA and FCA to the greatest extent, achieving the effect of 1+1 greater than 2, which can leave a strong mark for his career.

So it proposes that Peugeot Citroen can also replicate Jeep's model in the Chinese market.

But in fact, Peugeot Citroen and Jeep are not on the same level as the same magnitude, which makes Jeep withdraw from the Chinese market, on the one hand because the current Jeep brand reputation collapsed severely. The narrow positioning and the continuous decline in the reputation image make it difficult for Jeep to achieve great success in the Chinese market. On the other hand, Jeep's sales are not expected to be good. Even Jeep at its peak, its domestic sales are only about 200,000.

But Shenlong is completely different. Shenlong's glory is fixed at 700,000, which is a goal that many joint ventures cannot achieve. Shenlong once had extremely high voice within PSA. After all, in the global market, the Chinese market created a huge driving force for PSA back then.

allows Shenlong to retreat, which can optimize the financial statements of Stellantis Group in the short term, but it will also ruin the space for Stellantis Group to develop upward.

In October 2022, Shenlong completed 23 consecutive increases in the Chinese market, with sales growing from more than 40,000 units at the bottom to about 120,000 units this year. For Shenlong, although the sales base is not large, it has new market prospects.

is growing very fast in operation, design, positioning and user relationship processing, and it can be said that many companies are paying attention to.

Stellantis Group should consider how to apply and delegate power to the Chinese market, give the greatest freedom to Shenlong, and use technology, quality and design to endorse to promote the Chinese market's development speed, rather than using a light asset method to one-size-fits-all approach.

After all, Peugeot Citroen is not Jeep, it still has excellent market reputation, and its sales decline is because PSA has not had new technologies and new models for the Chinese market for a long time.

Tang Weishi, who moved from Renault to Citroen in 2014, consolidated his position in the global market by controlling costs.

In Tang Weishi's eyes, controlling costs and continuing profit are the three tricks. The prerequisite for making any decision should be whether it can make a profit. This is the principle. All proposals that can cultivate brand value and warmth will be rejected as long as Tang Weishi cannot see short-term benefits.

Tang Weishi has seen the strong Chinese market. In 2015, China became the largest overseas market in PSA except for its local area. That year, PSA launched 13 new cars in China.

follow-up, because the long-term unprofit of DS was cut off directly. In the past two years, Tang Weishi promoted the merger with FCA and became the head of Stellantis Group. The first thing he did was to liquidate the non-performing assets in China. Jeep was right to withdraw from the Chinese market because it could not gain a foothold in this market.

But Shenlong has great opportunities. The Chengdu factory has become a Versailles factory all over the world, providing rich benefits. Rather than saying that Tang Weishi wants Peugeot Citroen to withdraw from domestic light assets, it is better to let Shenlong sort out the assets by himself and make the operation more compact.

After all, behind Shenlong is the extremely strong Dongfeng Group . Shenlong has always been the cradle of reserve cadres within Dongfeng , and its status is higher than Dongfeng Nissan and Dongfeng Honda , while Guangfike has been marginalized within GAC for a long time.

So it hit it off, but if you want Shenlong to withdraw from the Chinese market, Dongfeng's negotiation attitude may not be strong. After all, Shenlong has allowed Dongfeng to see the spring breeze of hope in the past two years. Although its share in the Chinese market is not high, it continues to rise.

Tang Weishi did not analyze the problem based on the huge prospects of the Chinese market, but still solved the problem in a way that controls costs.

If the Stellantis Group can release more power to Shenlong, a more humane, sincere and well-known Shenlong will definitely make more achievements.